I wonder why they have not disclosed that they lost the Tulsa contract on 3-18-05? Maybe the six million it contributed to the bottom line is not material!!! Sounds like they are becoming the old pre-reverse split CCA. For those of you who bought in in the last couple of years they did a 10 for 1 reverse split.
Dear Sir, you are obviously an "insider" or an employee who should know better. The corporate office is involved with the key promotions of the top positions in the facilities. I know it is given much thought and much discussion. If someone has been passed over it is most likely because they are not a team-player, lack leadership skill, experience or education. As to the loss of the contract at D. L. Moss, that one is not a loss. It is a blessing. CCA is aggressively seeking profitable contracts which will improve the bottom line which employees and shareholders will benefit from. Moss was a holdover from the old administration and would never have been negotiated by the current administration on the terms it was when Doc was taking any thing breathing. It would be best if you did not discuss things which you obviously have no first hand knowledge of.
You are correct that every contract is important. But not every contract is profitable. This is an investor message board for people who are interested in, and concerned about, the company's financial performance. I am INTERESTED in the profitable contracts. I am CONCERNED about the unprofitable ones. I want more of the former, and less of the latter.
If that means I have a personality disorder, then I suspect I'm not the only one around here.
That was my understanding as well - that it was not profitable. Still, this is not good news for CCA. Privatization of jails has the potential to be very good business for the company. It's very hard to get, because you have entrenched interests (i.e., sheriffs) to overcome, but jails are in dire need of professionalism, which IMO CCA and the other privates have in spades compared to local good-ole-boy sheriffs.
CCA had, and still has, jails before Tulsa, but they are all small jails. Tulsa was the first big-city jail CCA won, and IIRC was intended to be a jumping-off place to go after other urban jails. Now that they have lost Tulsa, I fear that this market may be closed to them for a long, long time.
They bid again for the Tulsa contract. Why would they do that if it wasn't profitable.
Meanwhile, this just in, from Indiana: State inmates returning from Kentucky prisons New DOC chief says move will save Indiana millions March 21, 2005
J. David Donahue not only left the Kentucky Department of Corrections to take over Indiana's prison system; he's bringing more than 800 Hoosier prisoners with him.
Reversing the Indiana Department of Correction's stance under Democratic administrations, Donahue is telling state lawmakers that housing the prisoners in empty Indiana prison beds is cheaper than contracting with a private prison in Kentucky, even if more guards must be hired.
"Primarily, it's driven by economics," said Donahue, a former top executive with a Louisville, Ky.-based private prison operator. "We have available capacity that we need to use."
More recently, the Daniels administration served notice that by the end of May it will move 611 others from the 656-bed Otter Creek Correctional Facility at Wheelwright, Ky.
State officials are canceling a contract with Corrections Corp. of America, which built and staffs the private prison. The contract had been expected to last through January 2011, according to company filings with the Securities and Exchange Commission.
The state's contract with the corporation had been projected to cost $10.8 million this year. That's roughly $45 a day per inmate when the prison is full. Indiana officials had said the price of keeping an inmate in a Hoosier prison was $55 a day.
But Donahue recently told the Senate Appropriations Committee that, with more than 2,000 open beds, the state should look instead at the incremental cost of housing each additional inmate.
Donahue said moving an inmate into an unused bed there would cost just $11.47 a day.
Past estimates failed to factor in that the cost of serving each inmate declines as vacant bunks are filled, Donahue said.
"Beds, mattresses, those kinds of things are already there," he said. "Those are not new costs."
Donahue's boss, Gov. Mitch Daniels, said he couldn't be more pleased.
"It's a multimillion-dollar savings," Daniels said, "and it never made sense to me to hire citizens of other states when we could hire Hoosiers to guard prisoners in space we already have."